Dubai: New Real Estate Law Approved
Arabian Business, 20 July 2022: A new Real Estate Law has been approved in Dubai.
Dubai Decree No. 22/2022 has been introduced to support the Emirate’s growth of real estate investment funds. It effectively creates a register for property investment funds.
The Decree specifies the terms, conditions, and procedures for listing in the Register. Relevant Government authorities should license funds looking to be recorded in the Register, including the Securities and Commodities Authority and the Dubai Financial Services Authority (DFSA).
Funds should not be suspended from trading in Dubai’s financial markets when making an application. Members will be given specific privileges to help their investment activities in the Emirate’s real estate market.
The new register includes real estate investment funds licensed and regulated by Government bodies and private and free zones, including the Dubai International Financial Centre (DIFC). It covers all real estate in Dubai as well.
Applicants should have real estate assets of AED 180 million or more.
A dedicated committee to identify areas and properties where funds are allowed to invest will also be established. They will identify areas and properties that funds are allowed to invest in through full ownership or lease for up to 99 years.
The Dubai Land Department will appoint a valuation specialist to determine the value of properties owned by the funds. They will have to be accredited by the Dubai Real Estate Regulatory Agency.
The value of properties in which funds invest should be AED 50 million or more. The properties should be listed as commercial properties and comply with Dubai Decree No. 4/2010. Funds are allowed to relinquish ownership of properties only with approval from the Committee.
Property investment funds listed in the Register are entitled to receive the incentives specified by the Decree.
Under the Decree, the Chairman of the Executive Council can amend the incentives specified by the Decree or add new ones. The Chairman of the DIFC is also authorised to amend incentives for property investment funds operating within the DIFC’s jurisdiction.
In addition to subsequent decisions issued in line with Dubai Decree No. 22/2022, the Director General of the Dubai Land Department will be able to make other appropriate Decisions to implement the Decree.
Any legislation which contradicts or contravenes the new Decree will be repealed.
The Decree will be published in the Official Gazette and come into force on its published date.
Also reported in Al Bayan on 19 July 2022. For the full story, click here.
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